"Gross" income? --still unclear (form 134)

[Johnta 0]

Thanks for the quick and kind replies to my 'what exactly is 125% of Poverty level?' question.

I am self employed and my gross income on schedule 'C' (profit or loss from business) is safely over $16,500 but by the time I reach the income level of form 1040 (line 12) I've dropped below $16,500---

I'm guessing that the Embassy people are going to look at the form 1040 amount aren't they? (and ignore schedule C?)

Any self-employed folks out there?

I can identify with some of you who've commented that this whole thing has your stomach tied in knots....!

Thanks Friends! JB

[dirtyd301 0]

your gross income is on your w2. just look at that and i dont think what it is after deductions matter. i am not self employed but i was under the impression that all that matter is what is actually stated on your w2 not what you filed for. i hope that somewhat helped. Good Luck!!!

Diana

[geezer 1]

Im self employed as I understand it the number they look for is Adjusted Gross Income...thats what I'm going with just to be safe.

Most self employed folks dont get W-2's

[MichelleandCraig 1]

I would look for you, but it's 4am here and I'm really tired finally!! I would think the answer to this question would be somewhere in the guide, and if not, on the USCIS site itself. Other than that, I'm sure someone out there will give you a more definitive answer tomorrow. All the best! M.

[zyggy 9]

I would look for you, but it's 4am here and I'm really tired finally!! I would think the answer to this question would be somewhere in the guide, and if not, on the USCIS site itself. Other than that, I'm sure someone out there will give you a more definitive answer tomorrow. All the best! M.

The income they count is the amount on Line 12 of your 1040. They will not count your gross receipts before your self-employment taxes and business deductions are taken out...

This is the risk of self-employment.. you personally want to make as little as possible to pay the least amount of self-employment taxes and pay as much of your expenses out of your business as you can... it works most of the time, but in this case it is working against you. Unless you want to try and find a co-sponsor, redo your taxes to get your self-employment income above 125% of poverty line.

Edited April 17, 2006 by zyggy

[motu 6]

The income they count is the amount on Line 12 of your 1040. They will not count your gross receipts before your self-employment taxes and business deductions are taken out...

This is the risk of self-employment.. you personally want to make as little as possible to pay the least amount of self-employment taxes and pay as much of your expenses out of your business as you can... it works most of the time, but in this case it is working against you. Unless you want to try and find a co-sponsor, redo your taxes to get your self-employment income above 125% of poverty line.

I disagree - I am not working so don't have a W2 (I get a 1099) - I used my AGI from line 22 on the form I864 - I think others are confusing you because they work and have only one source of income - their work.

In my case I have a little income on line 7; a little more on line 10; most income on line 16; negative income on line 21 and the total/net on line 22 is what I used for my forms.

Good Luck

[JanaknJanet 0]

ok ok .. for example sake..

I too am self employed..

being self employed I understand about the frustrations of this.

number wise..

ok I have one dependant daughter.. so for me daughter and fiancee. would = 3

because I am thinking of long term AOS I wish to use the 100% number. not the 125% = $20773

I know it confuses some but why should i run into problems then. . and sail tru K-1 with 125%

ok.. Schedule C. = gross income 31820

business expenses 11047

NET PROFIT 20773

LINE 12 Businesss Income 20773

Line 22 Total Income 20773

Line 37 Adjusted gross Income 19305 which is total income - one half self-employment income

For K-1 and AOS they look at TOTAL INCOME... not adjusted.. it is used as line 22 from 1040

I am normally able to use much more deductions on my taxes for business expenses... usually lowering my income dramatically to less than 10K. but with being in the process of sponsering.. I have to make sure i have enought shown.

Someone pointed out to me... even if you have to "pay" some taxes.. he can still be sponsered by you.. plus.. You will be doing this hopefully within 3 years.. therefore.. after.. AOS.. .. worse case scinario and you wished to get your money you paid in taxes... file a amended return.. you have 3 years to do so ..

then you can refile.. with the business deductions.. .. ..

Personally I wont do so ... I feel.. not only will this show i made enough to sponser him.. but.. hey .. it increases my income I made for social security.. .. they go on how much you made for your retirement amount... and if i always make it so i claim as little as possible. in order to pay less or none in taxes.. then. when it comes time for me to retire and get social security.. All the years of my hard work.. will give me little to nothing as a social security benefit .... catch 22?

Just remember.. for self employed.. assess what is on the schedule C for you deductions.. limit what you have after all it is to our benefit to claim or not to claim a deduction..

Good Luck.. .

"The income they count is the amount on Line 12 of your 1040. They will not count your gross receipts before your self-employment taxes and business deductions are taken out... "

self employment taxes.. are listed on Line 58 as other taxes.. and YES YOUR INCOME IS COUNTED BEFORE THAT... .. Income is only counted AFTER BUSINESS DEDUCTIONS ... not including your SE TAX..

AGI is with the deduction of 1/2 SE tax.. but we dont use AGI.. we use line 22 TOTAL INCOME..

Hope this helps

[SENKA 0]

We are in a similar situations. My fiance is self-employed and we decided that he will not take all the deductions he could this year, so that we are safe. I also think that for self-employed people they look at the income after deductions

Good Luck!

Senka

[Johnta 0]

Thanks 'JanaknJanet' (& Senka, Mike & all who posted replies) !!!

That is tremendously helpful----I'll probably take fewr deductions this year and get my income up that way too.

Wow, This is a great site! Very comforting to have all of you to ask questions of.

Hope you all find smooth sailing!

I'll be around with more questions I'm sure and educating myself reading old threads. JB.

ok ok .. for example sake..

I too am self employed..

being self employed I understand about the frustrations of this.

number wise..

ok I have one dependant daughter.. so for me daughter and fiancee. would = 3

because I am thinking of long term AOS I wish to use the 100% number. not the 125% = $20773

I know it confuses some but why should i run into problems then. . and sail tru K-1 with 125%

ok.. Schedule C. = gross income 31820

business expenses 11047

NET PROFIT 20773

LINE 12 Businesss Income 20773

Line 22 Total Income 20773

Line 37 Adjusted gross Income 19305 which is total income - one half self-employment income

For K-1 and AOS they look at TOTAL INCOME... not adjusted.. it is used as line 22 from 1040

I am normally able to use much more deductions on my taxes for business expenses... usually lowering my income dramatically to less than 10K. but with being in the process of sponsering.. I have to make sure i have enought shown.

Someone pointed out to me... even if you have to "pay" some taxes.. he can still be sponsered by you.. plus.. You will be doing this hopefully within 3 years.. therefore.. after.. AOS.. .. worse case scinario and you wished to get your money you paid in taxes... file a amended return.. you have 3 years to do so ..

then you can refile.. with the business deductions.. .. ..

Personally I wont do so ... I feel.. not only will this show i made enough to sponser him.. but.. hey .. it increases my income I made for social security.. .. they go on how much you made for your retirement amount... and if i always make it so i claim as little as possible. in order to pay less or none in taxes.. then. when it comes time for me to retire and get social security.. All the years of my hard work.. will give me little to nothing as a social security benefit .... catch 22?

Just remember.. for self employed.. assess what is on the schedule C for you deductions.. limit what you have after all it is to our benefit to claim or not to claim a deduction..

Good Luck.. .

"The income they count is the amount on Line 12 of your 1040. They will not count your gross receipts before your self-employment taxes and business deductions are taken out... "

self employment taxes.. are listed on Line 58 as other taxes.. and YES YOUR INCOME IS COUNTED BEFORE THAT... .. Income is only counted AFTER BUSINESS DEDUCTIONS ... not including your SE TAX..

AGI is with the deduction of 1/2 SE tax.. but we dont use AGI.. we use line 22 TOTAL INCOME..

Hope this helps